Innovation State Leads the Trend: An Analysis of Cryptocurrency Taxation and Regulation in New Hampshire

1. Introduction

New Hampshire is known for its beautiful natural scenery, especially for the White Mountains, lakes, and autumn maple leaf views. As an important participant in the American Revolutionary War, the state is widely recognized for its motto "Live Free or Die." Today, New Hampshire is once again at the forefront of innovation, becoming a pioneer in encouraging the acceptance of Crypto Assets across the United States. In May 2025, the state became the first in the nation to legislate the establishment of a Bitcoin reserve, a move that has garnered widespread attention.

Prior to this, New Hampshire won the favor of the crypto industry due to its friendly tax policies. This article will delve into the state's tax system, particularly the taxation system related to Crypto Assets, as well as the latest developments in cryptocurrency regulation.

2. The Basic Tax System of New Hampshire

2.1 Overview

New Hampshire's tax system is relatively friendly and attractive to high-income earners, business owners, and wage earners. As one of the few states in the U.S. that does not impose personal income tax, sales tax, or capital gains tax, the state is highly appealing to taxpayers. However, the tax burden is primarily shifted to other taxes, particularly property taxes, which may put some pressure on landlords and tenants. Overall, New Hampshire's tax system holds a competitive advantage in the U.S., characterized by simplicity, economic freedom, and high transparency.

The State Taxation Administration is responsible for the collection and management of various types of taxes, ensuring taxpayers fulfill their obligations through various means, while also supervising the collection and management of municipal taxes.

2.2 Main Tax Categories

2.2.1 Business Operating Tax (BET)

The Business Enterprise Tax is one of the unique tax types in New Hampshire, levied at a rate of 0.55% on the value of business entities, including compensation, interest, and dividends paid. This tax method is based on the scale of business operations rather than net profit. It applies to various types of business entities with total revenue exceeding $277,000 or a business value tax base exceeding $111,000, regardless of profitability.

2.2.2 Corporate Profit Tax (BPT)

The corporate profit tax is equivalent to the state-level corporate income tax, levying a 7.5% tax on the net profits earned by businesses in the state. It applies to various entities with an annual gross revenue exceeding $92,000. This tax rate has decreased compared to previous years, reflecting the ongoing results of tax reforms in the state.

2.2.3 Property Tax

Property tax is the primary tax burden for residents of New Hampshire and an important source of revenue for the state government. The state compensates for the absence of personal income tax and sales tax with high property taxes. In 2024, property tax generated approximately $360 million in revenue for the state government, a year-on-year increase of 38.3%.

Property tax is collected and managed by local governments, and the tax rates may vary by region. The state tax authority conducts rate equalization assessments to ensure fairness in tax rates across different areas. This tax applies to various types of real estate, including residential, commercial, and industrial land and their buildings.

2.3 New Hampshire's Crypto Assets tax system

Currently, New Hampshire has not established a specific tax framework for Crypto Assets trading or related activities. However, Crypto Assets businesses or other economic entities operating in the state may still be required to pay the aforementioned taxes, such as corporate profit tax, business enterprise tax, and property tax.

This tax system provides convenience for Crypto Asset companies, making New Hampshire an ideal location for Crypto Asset companies to develop products and obtain a larger share of revenue. Furthermore, since there is no personal income tax or capital gains tax, residents can retain most of the income earned through coin exchanges.

Overall, New Hampshire's low tax burden environment allows Crypto Assets businesses to fully leverage the existing system to expand their operations while minimizing tax liabilities. In the future, the state may undertake more liberal tax reforms to further encourage the development of the encryption industry.

3. Future Development Trends of Crypto Assets Regulation in New Hampshire

Since 2024, New Hampshire has taken several legislative actions to provide a legal framework for blockchain and Crypto Assets-related activities, promoting the state as a leading region for the application and development of Crypto Assets. Last year, the state launched the "Decentralized Autonomous Organization Act," which provides legal recognition for blockchain organizations and encourages them to establish, expand, or relocate their operations in New Hampshire.

In May 2025, the governor announced the establishment of the "Strategic Bitcoin and Digital Assets Reserve Fund," allowing the state treasury to invest up to 5% of public funds in digital assets with a market capitalization exceeding $500 billion. The signing of this bill marks the first legal recognition of Bitcoin as a reserve asset by a local government in the United States, providing a legislative template for other states.

Another House bill (No. 639) under consideration aims to provide more protection for Crypto Assets miners and reduce the regulatory burden on Crypto Assets mining activities. The bill may also protect mining companies from being prohibited by local governments for reasons such as noise and energy consumption, and deny local governments the power to prevent people from using Crypto Assets to purchase goods and services.

These regulatory measures reflect the growing recognition of digital assets at the institutional level and demonstrate the state's intention to diversify its portfolio.

4. Summary

New Hampshire's progress in the regulation of Crypto Assets and the broad acceptance of Crypto Assets activities reflects the positive expectations of the Crypto Assets market. Although it is currently difficult to fully assess the effectiveness of the new legislation, it is anticipated that the state's support for Crypto Assets is likely to strengthen further in the future.

From a broader perspective, New Hampshire may once again play a leading role, encouraging other states in the United States to more actively embrace Crypto Assets. This could lead to the emergence of more crypto-friendly jurisdictions, providing investors and developers with more ideal locations to establish and operate crypto businesses.

For New Hampshire, investing in Bitcoin is not only a way to diversify reserves but also has the potential to bring substantial investment returns. At the same time, the state's supportive stance on Crypto Assets, coupled with a low tax burden environment, is expected to attract a large number of Crypto Assets enthusiasts and developers, providing a fertile ground for the development of innovative projects.